The Tax Cuts and Jobs Act (TCJA) has had a significant impact on the tax deductions that can now be claimed for business entertainment and meals. Following is a wrap-up of the legislation: Meals and entertainment – 0% deductible All entertainment, including admission fees, tickets, and food and beverage unless the food and beverage is separately stated from the cost of the entertainment on one or more bills, invoices, or receipts (See section titled Meals – 50% deductible below) or it meets one of the exceptions under the section titled, “Meals and entertainment – 100% deductible.” Meals – 50% deductible Business meals: meals with a current or potential business customer, client, consultant, or similar business contact; Employee travel meals: Meals incurred by an employee or self-employed individual while traveling away from home if their duties require them to be away from the general area of their tax home substantially longer than an ordinary day’s work, and they need to sleep or rest to meet the demands of their work while away from home while out of town; Meals for employees, stockholder business meetings: meals directly related to business meetings of employees, stockholders, agents or directors; Meals for meetings of business … Read More
The Treasury Department and the IRS have released on IRS.gov the corrected draft final regulations under section 199A (section 199A final regulations) on the new qualified business income (QBI) deduction (section 199A deduction). These corrections include, among other edits, corrections to the definition and computation of excess section 743(b) basis adjustments for purposes of determining the unadjusted basis immediately after an acquisition of qualified property, as well as corrections to the description of an entity disregarded as separate from its owner for purposes of section 199A and §§1.199A-1 through 1.199A-6. The corrected draft has been submitted to the Federal Register for publication.